What specific items must a Cream franchisee purchase from Parent?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ative vendors without receiving our prior approval.
You must purchase your entire initial and ongoing inventory of ice cream products ("Proprietary Products") from Parent. You must also purchase: (i) certain toppings, branded merchandise, gift cards, uniforms, and décor and decals from Parent; (ii) architecture services, permit expeditor services, graphics and signage, insurance, certain software solutions (including software for CRM, accounting, reputation management, in-Shop chat, point-of sale, online delivery, and digital marketing), the Computer System, certain inventory (including specialty foods), and certain other supplies (including aprons) from our exclusive designated suppliers; and (iii) other furniture, fixtures, equipment, supplies, construction services, lighting, millwork, software, and inventory from suppliers we have approved. We may add, remove, and/or otherwise modify our designated and approved suppliers at any time.
We had no franchisees as of the end of our 2024 fiscal year, and therefore no revenue was collected by us or our affiliates from the sale of products or services to our franchisees in our most recently completed fiscal year.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees are required to purchase specific items from the Parent company and designated or approved suppliers. Cream franchisees must purchase their entire initial and ongoing inventory of ice cream products, referred to as "Proprietary Products", directly from Parent. Additionally, franchisees must purchase certain toppings, branded merchandise, gift cards, uniforms, and décor and decals from Parent.
Beyond direct purchases from Parent, Cream franchisees are also obligated to acquire other items from exclusive designated suppliers. These include architecture services, permit expeditor services, graphics and signage, insurance, certain software solutions (covering CRM, accounting, reputation management, in-Shop chat, point-of sale, online delivery, and digital marketing), the Computer System, certain inventory (including specialty foods), and certain other supplies (including aprons). Cream also requires franchisees to obtain other furniture, fixtures, equipment, supplies, construction services, lighting, millwork, software, and inventory from suppliers that Cream has approved. Cream retains the right to modify these designated and approved suppliers at any time.
The FDD indicates that purchases made according to Cream's specifications, or from approved or designated suppliers, will constitute approximately 80% of the franchisee's total purchases to establish the Shop and about 90% of the total purchases to operate the Shop. This highlights the significant control Cream exerts over the supply chain and the franchisee's purchasing decisions. Prospective franchisees should carefully consider these requirements and evaluate the potential impact on their operating costs and flexibility.